From Peak Prosperity to the Beginning of Collapse (1975–1982)

At the beginning of 1975, Lebanon stood at the height of its financial prosperity: Lebanese banks financed foreign governments and institutions, and the lira was strong. Yet warning signs were growing. The civil war changed everything. Despite pressure and attempted raids, Banque du Liban protected its gold and reserves, while deposits kept rising to reach $12 billion in 1982. The Israeli invasion then dealt a severe blow that opened the path toward economic collapse.